Subscriptions
2.1 KYC
The FM performs the necessary KYC/AML checks to start the Investor’s onboarding procedure. The verification process relies on Verifiable Credential tools to validate on-chain the investors through KYC/AML service providers.
Exploring Verifiable Credential integrations with Polygon ID, Dock, and Verite
2.2 Address Whitelist
After a successful due diligence process, the Investor’s address is whitelisted.
The Fund will reject any subscription attempts unless the Investor’s address has been whitelisted.
2.3 Liquidity Deposit
The Investors can then deposit their funds into a segregated compartment for Pending Subscriptions. These subscriptions are not effectively part of the Fund’s asset yet, but rather are currently on hold, waiting to be included in the next Net Asset Value (NAV) calculation. The Fund Manager cannot access them yet, as they are kept on a separate smart contract. .
Once the NAV is performed, the funds can be moved to any of the Fund's custodian accounts.
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2.4 Fund shares Issuance
After the latest NAV calculation has been submitted (see NAV Calculation section), the Fund issues additional shares according to the following formula:
New_shares = (amount_deposited - entry_fee) / NAV_unit_price
The Investors receive the Fund units in their personal wallets.
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Redemptions